COMPANY MERGER FAILS AFTER SHAREHOLDER AIRLIFT

Press, Volume XCVII, Issue 28491, 22 January 1958, Page 11

COMPANY MERGER FAILS AFTER SHAREHOLDER AIRLIFT

(Rec. 10 p.m.) SYDNEY, Jan. 21. A bold attempt to integrate all major private airlines in Australia failed by only minutes today after weeks of preparation including an airlift of shareholders to a special meeting at Mascot Mr R. M. Ansett, the managing director of Australia’s youngest major airline, Ansett’s, completed a multi-million-pound deal last year which merged Ansett’s and Australian National Airways, one of the two big airlines in Australia. It was backed largely by shipping interests but found competition with the Government’s Trans-Australia Airlines hard going in recent years. Mr Ansett’s next target was Butler Air Transport. Ltd., which operates inland routes. When a direct approach to Butler shareholders failed, Mr Ansett manoeuvred large share purchases and obtained several nominees on the Butler board of directors. Butler countered by share issues to employees and others whose support could be expected. Ansett failed in a Court bid to have the issues declared invalid.

Today was the day of the vote which could give the Ansett group control. More than 400 AnsettA.N.A. shareholders with Butler voting power were flown in nine airliners from Melbourne, with how-to-vote instructions from group leaders. Butler airlifted shareholders too.

But ballot papers for the elec-

tion of new directors were not available when the meeting began at noon and it was decided to adjourn until 3 p.m. Mr Ansett tried to have the papers presented in time, but at 3 p.m. the chairman of Butlers. Sir John Northcott, said that they had not arrived. He then asked if any Butler shareholders would now prefer to vote personally rather than by proxy. Many said that they would. Sir John Northcott announced that the poll would be taken on January 28 in spite of Mr Ansett’s interjection that the papers were already on their way to the airport. Sir John Northcott explained that because some shareholders had changed their minds on the method of voting it was too late to arrange the ballot for today. The meeting was held in Sydney on the insistence of the Butler company that it be at their registered office. The airlift had failed.